San Diego office leasing activity remains low at mid-year 2023

In the second quarter 2023, the San Diego office market saw a slight uptick in leasing activity from last quarter. Leasing activity increased by 9% to 1.1 million square feet (msf) from last quarter while also increasing by 15.6% from one year ago. However, market conditions remain unstable due to recession fears, rising interest rates, and a slowdown in hiring caused office demand to remain below pre-pandemic levels. This has resulted in many occupiers downsizing or subleasing their existing spaces especially in the tech and life sciences industries. General Atomics, Qualcomm and TuSimple are among a few technology companies that have all announced recent layoffs.

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